Customer spending on quantum computing services may have experienced a temporary setback, but the outlook for the industry remains optimistic, according to IDC. Several factors, such as slower advancements in quantum hardware development and the emergence of alternative technologies like generative AI, have hindered customer investment in quantum computing. Additionally, macroeconomic factors such as higher interest and inflation rates have contributed to the decline.
However, IDC predicts that the market for quantum computing services will regain momentum with the introduction of major quantum hardware breakthroughs. Until then, growth in the industry will primarily be driven by the maturation of quantum computing infrastructure and platforms, along with an increasing demand for performance-intensive computing workloads suitable for quantum technology.
IDC forecasts a compound annual growth rate (CAGR) of 11.5% for investments in the quantum computing market from 2023 to 2027. By the end of this period, investments are expected to reach nearly $16.4 billion. These investments will come from various sources, including public and privately funded institutions, technology and services vendors, venture capitalists, and private equity firms.
One noteworthy trend is the growing interest in quantum computing among global government agencies. To date, 14 countries, along with the European Union, have announced long-term quantum initiatives that will generate substantial funding for quantum computing research. This surge in funding has already led to significant advancements in quantum computing hardware and software, as well as improvements in error mitigation techniques.
The rapid progress in quantum computing has sparked speculation about the possibility of achieving a near-term quantum advantage using today’s noisy intermediate-scale quantum (NISQ) systems. While NISQ systems may currently be limited to small-scale experimentation, the continued investments in quantum computing are expected to pave the way for large-scale quantum systems capable of solving complex problems.
IDC expects 2022 to be a crucial year for the quantum computing industry. Vendors have developed strategic approaches and published roadmaps to enhance qubit scaling, address error mitigation, and improve the accessibility of quantum systems for end-users. Partnerships between quantum hardware vendors and on-premises quantum deployments have also been announced, ensuring increased accessibility and usability. Moreover, the integration of quantum, AI, and HPC through the launch of new scientific accelerator platforms is set to revolutionize the field.
Heather West, Ph.D., research manager within IDC’s Enterprise Infrastructure Practice, states that while quantum computing systems may currently only be suitable for small-scale experimentation, organizations should not hesitate to invest in quantum initiatives. By doing so, they can prepare themselves to leverage the power of quantum computing in the future.
The IDC report, titled “IDC’s Worldwide Quantum Computing Forecast: 2023-2027: Surfing the Next Wave of Quantum Innovation,” provides a comprehensive market forecast for customer spend on quantum computing services (hardware, software, cloud, and others) from 2023 to 2027. The report also analyzes the base quantum computing as a service, enabling quantum computing as a service, and adjacent quantum computing as a service customer spend. Additionally, it offers insights into the trends, drivers, and challenges faced by quantum computing vendors and cloud service providers.
For more information on IDC’s Quantum Computing Trends and Strategies research, please click [here](https://www.idc.com/).
Frequently Asked Questions (FAQ)
Q: What factors have impacted customer spending on quantum computing services?
A: Slower advancements in quantum hardware development, the emergence of alternative technologies like generative AI, and macroeconomic factors such as higher interest and inflation rates have negatively affected customer spend.
Q: How do you expect the quantum computing market to grow?
A: IDC predicts that the market for quantum computing services will experience slower growth until major quantum hardware breakthroughs are announced. However, investments in the industry are expected to grow at a CAGR of 11.5% from 2023 to 2027, reaching nearly $16.4 billion by the end of that period.
Q: What is driving the growth in the quantum computing market?
A: The growth of the quantum computing market will be primarily driven by the maturation of quantum computing infrastructure and platforms, as well as the increasing demand for performance-intensive computing workloads suitable for quantum technology.
Q: Why is there growing interest in quantum computing among global government agencies?
A: Fourteen countries, along with the European Union, have announced quantum initiatives that span multiple years and involve significant funding for quantum computing research. This has led to advancements in quantum computing hardware and software, as well as improvements in error mitigation techniques.
Q: Are we close to achieving a quantum advantage with current quantum systems?
A: While current quantum systems may only be suitable for small-scale experimentation, the continued investments in quantum computing suggest that we may be edging closer to achieving a quantum advantage. Major advancements are expected to enable large-scale quantum systems capable of solving complex problems.
Q: How can organizations benefit from investing in quantum initiatives?
A: Despite the current limitations of quantum computing systems, organizations are encouraged to invest in quantum initiatives to become quantum-ready for the future. The ongoing advancements in the field ensure that investing now will position organizations to leverage the full potential of quantum computing as it matures.
Q: Where can I find more information on IDC’s Quantum Computing Trends and Strategies research?
A: For more information on IDC’s Quantum Computing Trends and Strategies research, please visit [here](https://www.idc.com/).